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Market Analysis Report (12 Jun 2020)

A Second Strange Ethereum Transaction With a $2.6M Gas Fee Baffles Experts | Binance Launches Quarterly Bitcoin futures | Seed CX Exchange Closes and Pivots to Focus on Settlements



A second mysterious Ethereum transaction paying $2.6 million in gas fees has been sent by the same user, leading to speculation over whether the account belongs to a malfunctioning trading bot.

Binance has expanded its derivatives offering by adding quarterly bitcoin futures. The quarterly contracts allow traders to speculate on the future price of bitcoin.

Seed CX, a regulated crypto derivatives exchange, has announced that its exchange will close and that the company will focus on its custody and settlement service called Zero Hash.

  • A Second Strange Ethereum Transaction With a $2.6M Gas Fee Baffles Experts
  • Binance Launches Quarterly Bitcoin Futures
  • Seed CX Exchange Closes and Pivots to Focus on Settlements

At the time of writing, bitcoin (BTC) is trading at $9,466.08 (-3.47%) with a daily Top Tier volume of $5.06 bn. As for ether (ETH), it is trading at $236.66 (-4.01%) with a daily Top Tier volume of $1.59 bn. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 3,051.81 (-6.42%).


Is Bitcoin changing hands or being exchanged for altcoins?



HODLers are known to sell at the top of the market cycle. However, since the price rally in July 2020, dormant coins from 2017 and 2018 are selling at the current price level. Pioneer of on-chain analysis, Willy Woo recently tweeted saying,

Is BTC changing hands or being exchanged for altcoins?

Source: Twitter

In several instances in 2014, 2017, and 2018, HODLers have booked unrealized profits. However, Bitcoin’s price was an ATH in that case. Currently, the price is above $11300 and dormant coins getting sold at this price level may indicate the possibility of an upcoming drop in price. 

On the contrary, since the second week of October 2020, several altcoins have been performing well. Offering double-digit returns in a week or a 24 hour period and this is lucrative to HODLers. Based on CoinMarketCap’s on-chain analysis, 88% of HODLers have unrealized profits in their portfolio. In anticipation of a Bitcoin price rally, HODLers may book a couple of tranches of profits and wait. They may buy altcoins like ADA, XLM, or FIL based on their weekly and 24-hour returns and book profits in the short-run.

Is BTC changing hands or being exchanged for altcoins?

Trade Volume of FIL || Source: Coinmarketcap

This is evident from the sudden and unpredicted increase in the trade volume of FIL, in the past 5 days. From 31 million it increased to 155 million in a single day. Corresponding to this increase in trade volume, the price has increased by nearly 22% in one week. 

Altcoins are a lucrative option for another reason, Bitcoin’s volatility and volume are low. The recovery is taking longer than expected, even with the ushering in of smart money. It may be long before HODLers who purchased above $10000 would see an ROI of 100%. In the meanwhile, the ones who have persevered through $3k-$9k level are selling and turning in.

Is BTC changing hands or being exchanged for altcoins?

Map of spent HODLer BTC || Source: Whalemap

Holding an asset long enough comes with an opportunity cost. HODLers who are aware of Bitcoin’s potential long-term return have paid this cost and may be ready to take by selling Bitcoin and trading in Altcoins, or reducing risk exposure and switching to Bitcoin options. This move by HODLers does not signal towards a price drop. There is an equal possibility that this builds a bullish case for Bitcoin in the longterm and altcoins in the short term.


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Founder of DeFi’s (YFI) just launched another Ethereum experiment


on (YFI) founder Andre Cronje is full of ideas, even after he managed to roll out one of the most successful crypto projects in history.

The DeFi innovator recently unveiled his latest experiment, a network called the Keep3r Network, whose native token is KPR.

Unfortunately, like his other recent experiment, some participants got burned as they bought the token of the project without thinking, then got dumped on by bots and power users that managed to accumulate large swaths of this asset.

Here’s a recap of Cronje’s latest project, including what it is and what went down after he released it.

What is the Keep3r Network?

According to Cronje’s Github, which published for this new system on Oct. 19, Keep3r Network is a decentralized marketplace where projects can post jobs and where users can take jobs.

Jobs can be anything as “simplistic as calling a transaction, or as complex as requiring extensive off-chain logic.” A sample job Cronje mentioned was calling the “harvest” function in a Vault, which collects and liquidates the coins farmed by the invested capital.

The idea with Keep3r is to allow projects strapped for manpower, such as perhaps, to offload some of the work or maintenance to a group of freelancers.

To ensure that the user is right for a job, job posters can “specify a minimum bond, minimum jobs completed, and minimum Keeper age required to execute this function.”

In this system, the reward for each job being completed is meant to be paid in KPR tokens.

Job posters can pay out KPR by providing KPR-ETH liquidity on Uniswap.

There is no formal user interface for this network, with Cronje using the term “beta” in the project’s readme document.

A stealth launch

Like with Eminence and Liquidity Basic Income — Cronje’s two prior experiments released in the past month — Cronje directly interacted with the Keep3r Network contracts, signaling to Ethereum users that it is him behind this project.

Unlike with Eminence and Liquidity Basic Income, though, this project flew under the radar.

Cronje did not tweet about it, nor did he publish a Medium blog on the matter.

This meant that the only ones who know of Keep3r Network existence for a long time were those that followed Cronje’s GitHub, or those that tracked his Ethereum address. Twitter, which catalyzed the hype around Eminence and Liquidity Basic Income, did not pick up on this stealth launch.

As a result, little capital flowed into the KPR token itself.

However, there was some money that found its way into KPR.

By the evening of Oct. 19, KPR traded for $2,000 — 200,000 percent than its starting price just shy of $1.

But as quickly as it rallied, the original KPR dumped back under $100.

The reason: Cronje redeployed the Keep3r contracts a number of times, seemingly to iron out bugs in the network.

He continues to test KPR’s functionality with new contracts. But for some reason, bots or users experiencing FOMO continue to buy the coin anyway as they seek to capture the next coin that rallies 1,000,000 percent.

Posted In: , DeFi

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Bitcoin Decoupling Nearing $12K As Wall Street Tumbled: Crypto Market Watch



Bitcoin finally made a move in the past 24 hours and surged to a new 7-week high of over $11,800. Interestingly, BTC’s price increase contrasted with the US stock markets as the three most prominent indexes closed yesterday’s trading session with serious losses.

Bitcoin Spikes To $11,820

CryptoPotato reported yesterday that Bitcoin had remained relatively calm in the past several days, despite recent negative news. The popular digital asset exchange OKEx suspended withdrawals after reports that its founder was taken away by the police, and the CME gap left open at $11,100 suggested a possible short-term price drop.

However, the primary cryptocurrency tends to prove people wrong, and that precisely what transpired yesterday. BTC traded around $11,400 but initiated an impressive leg up that resulted in a 3.7% increase to $11,820 (on Binance). This was the highest price level Bitcoin had seen since early September.

The asset has retraced slightly since then and currently hovers around $11,750. Nevertheless, this is still a 2.8% increase on a 24-hour scale.

The technical aspects indicate that the $12,000 – $12,100 area is the next major resistance in BTC’s way up.

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BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

With the price jump mentioned above, Bitcoin displayed early signs of decoupling from Wall Street. After weeks of resembling the US stock indexes, BTC surged in value, while the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite all dropped by over 1.5% in a single day.

Bitcoin Extends Its Market Dominance

Although some alternative coins mimicked Bitcoin’s gains, most have remained relatively still. Consequently, the metric comparing BTC’s market cap with all altcoins, namely the Bitcoin dominance, has increased by nearly 1% to 59.7% in 24 hours. On a weekly scale, it has expanded by almost 2%.

Ethereum’s 1.4% price spike has taken ETH near $380. Ripple (3.1%) is the most impressive gainer in the top 10, and XRP trades close to $0.25.

Bitcoin Cash (0.8%), Chainlink (0.5%), Cardano (1%), and Litecoin (2%) are also in the green from the top ten. In contrast, Binance Coin (-0.2%) and Polkadot (-1%) have decreased slightly.

Cryptocurrency Market Overview. Source: quantifycrypto
Cryptocurrency Market Overview. Source: quantifycrypto

Dash has surged the most on a 24-hour scale (11.6%) to $74. Nano follows with a 10% pump to $0.9.

On the other hand, Aave (-12%) and ABBC Coin (-10.5%) have lost the most value. AAVE trades below $35, while ABBC hovers around $0.57.


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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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